Caleb's medical expenses before reimbursement for the year include the following: Caleb's AGI for the year is $50,000.He is single and age 58.Caleb also receives a reimbursement for medical expenses of $1,000.Caleb's deductible medical expenses that will be added to the other itemized deduction will be
A)$10,350.
B)$9,100.
C)$14,100.
D)$15,100.

Question

Caleb's medical expenses before reimbursement for the year include the following:  Caleb's AGI for the year is $50,000.He is single and age 58.Caleb also receives a reimbursement for medical expenses of $1,000.Caleb's deductible medical expenses that will be added to the other itemized deduction will be
A)$10,350. 
B)$9,100. 
C)$14,100. 
D)$15,100.

Quizplus · Accepted Answer

Caleb's deductible medical expenses are calculated by taking the total medical expenses before reimbursement ($11,450) and subtracting 7.5% of his AGI ($3,750). This gives a total deductible medical expense of $7,700. However, since Caleb also receives a reimbursement of $1,000, this amount must be subtracted from his deductible expenses, resulting in a final amount of $6,700. This amount, when added to Caleb's other itemized deductions, will determine whether he should take the standard deduction or itemize his deductions.

Caleb's Medical Expenses Before Reimbursement for the Year Include the Following